West Pharmaceutical Services Reports $2.89 Billion in Net Sales for Fiscal Year 2024

West Pharmaceutical Services, Inc. reported a consolidated net sales figure of $2.89 billion for the fiscal year ending December 31, 2024, reflecting a decrease of 1.9% compared to $2.95 billion in 2023. The decline was attributed to a $7 million unfavorable impact from foreign currency translation and a $4.3 million reduction related to the disposal of a manufacturing facility. The Proprietary Products segment, which includes packaging and drug delivery systems, saw a 2.6% decrease in net sales to $2.33 billion, while the Contract-Manufactured Products segment experienced a modest increase of 1.1% to $558.7 million.

The company's operating profit also declined significantly, falling to $569.9 million from $676 million in the previous year, marking a 15.7% decrease. This decline was primarily driven by lower gross profit margins, which decreased from 38.3% in 2023 to 34.5% in 2024. The decrease in gross profit was largely due to reduced customer demand and an unfavorable shift in the product mix, particularly in high-value product offerings. Research and development expenses increased slightly to $69.1 million, reflecting ongoing investments in product enhancements and new technologies.

In terms of strategic developments, West continued to focus on enhancing its product offerings and expanding its market presence. The company reported that sales outside the U.S. accounted for 57.5% of total net sales, indicating a strong international footprint. The company also emphasized its commitment to innovation, with over 170 patents issued globally in 2024. Additionally, West's workforce grew to approximately 10,600 employees, with a hiring rate of about 1,800 new team members during the year.

Looking ahead, West Pharmaceutical Services expressed cautious optimism regarding its future performance. The company plans to continue investing in its proprietary products and contract manufacturing capabilities while navigating the challenges posed by global economic conditions, including inflation and supply chain disruptions. Management indicated that they expect to maintain compliance with financial covenants and continue to leverage their strong cash position to support operational needs and strategic initiatives. The company remains committed to delivering quality products and services to its customers while adapting to evolving market demands.